LVR increase - pay LMI again?

Discussion in 'Loans & Mortgage Brokers' started by Martinez22, 24th May, 2016.

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  1. Martinez22

    Martinez22 Well-Known Member

    Joined:
    21st Jun, 2015
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    Location:
    Perth
    Hi, just a quick question.

    If you initially paid LMI with Bankwest and a few years down the track you decide to refinance to release some equity with the same bank, do you have to pay LMI again?
     
    Martinez22, 24th May, 2016
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    18th Jun, 2015
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    03 9877 3000
    Usually you'd only pay LMI on the increase as long as the only real change is an increase. You wouldn't need to pay LMI on the full amount. This means the LMI would be hundreds or perhaps one or two thousand, rather than $5k+ (very much depends on the loan amount and LVR).

    If you add or remove borrowers, a new loan would be needed and a new LMI policy would be applied and it might be around 2% of the loan amount.
     
    Peter_Tersteeg, 24th May, 2016
    #2
  3. nothingman

    nothingman Active Member

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    24th Feb, 2016
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    Location:
    Sydney
    you pay full amount, but BW will give you 'credits' for your original LMI amount
     
    nothingman, 24th May, 2016
    #3